The USDJPY is testing - and now trading above - the swing high from Friday at 130.973. The Asian session high also stalled near that level before heading lower. The price high just reached 131.12.
The move lower in the Asian session did extend toward an old swing area between 130.49 and 130.55, but after falling below the area, the momentum stalled and sellers turned back to buyers.
The positive start to US stocks and higher US rates are helping to extend the pair to the upside. The 10 year yield is up to 2.995%, up 4.1 basis points. The S&P index is now up 1.4% and the Nasdaq up 1.82%.
For the USDJPY, the 20 year highs reached on April 28 at 131.242 and May 9 at 131.342 are the next key upside targets.
As are reminder, last week Microsoft warned of a currency hit as a result of the higher dollar. The USDJPY has been the strongest of the majors and it's run to the upside may also be hurting other companies. So be aware of the negative from the higher dollar in the grand scheme of things, but for now, the stocks are positive technically above their 200 hour MAs.
For your guide:
- S&P 200 hour MA is at 4072.01 with the price at 4162
- Nasdaq 200 hour MA is at 11967.88 with the price at 12204